Minnesota businesses are getting increasingly worried about the state’s new “paid family and medical leave mandate that begins Jan. 1. The mandate mirrors what a growing number of states are doing: offer job-protected leave with partial wage replacement to employees facing major life events, from welcoming a child to caring for a loved one or managing a serious health condition.

This new law is a major win for workers.

But, for employers, especially small businesses, it’s a call to action — but not a cause for panic.

“Paid family and medical leave,” or PFML, will be funded through payroll contributions split between employers and employees, and it will be administered by the state. Minnesota also allows for “equivalent plans,” meaning private alternatives that meet or exceed the state’s

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